Skip to content
    RSKD
    Earnings call· Jun 2026(Q2 FY26)

    RISKIFIED Q2 FY26 earnings call RSKD

    Aug 12, 2026 Source

    Executive summary

    Riskified Q2 FY26 — Strong Revenue Growth and Raised Outlook

    Riskified delivered robust Q2 FY26 results, driven by an increasingly complex fraud environment and an expanded platform. The company saw accelerated revenue growth and improved profitability, leading to a raised full-year outlook. Management emphasized the value of its unified platform in addressing sophisticated fraud across the transaction lifecycle and expanding into new payment methods and categories.

    Highlights

    5

    • Revenue grew 22% year-over-year to $98.7 million, marking the strongest growth in over 4 years.

    • Adjusted EBITDA increased 84% to $3.9 million, demonstrating efficiency in scaling cost structure.

    • Full year revenue and adjusted EBITDA outlook was raised for the second time this year.

    • Multiproduct merchant base grew approximately 50% year-over-year, indicating successful platform strategy and upsell opportunities.

    • Competitive win rates remained above 75% in the second quarter, highlighting platform differentiation.

    Concerns

    2

    • Gross margin in Q2 was 46%, attributed to ramping new merchants which typically begin at lower margins and a mix shift towards lower-margin ticketing.

    • GAAP net loss was $9.1 million, impacted by a decline in interest income and an increase in other expenses primarily tied to foreign currency fluctuations.

    Guidance & targets

    8
    CategoryTargetConfidence
    Full year revenue
    $400M-$410M
    high materiality
    High
    Q3 revenue growth
    approximately 27%
    medium materiality
    High
    Full year Adjusted EBITDA
    $33M-$39M
    high materiality
    High
    Full year gross profit growth
    11% to 14%
    medium materiality
    High
    Q3 gross profit growth
    similar to the growth in the second quarter
    medium materiality
    High
    Quarterly non-GAAP operating expenses
    $42M-$43M
    medium materiality
    High
    Full year Free cash flow
    exceed $40M
    medium materiality
    High
    Digital Finance category growth rate
    significantly exceed the company's average growth rate
    medium materiality
    High

    Segment performance

    7
    SegmentRevenueYoYQoQMargin
    Digital Finance
    Growth driven primarily by the ramp of multiple new merchants onboarded in the quarter to the event contracts and gaming vertical, with upsell activity contributing.
    		—approximately 180%——
    Tickets and Travel
    Acceleration from 18% in Q1. Tickets was the primary driver with growth accelerating meaningfully due to strengthened same-store sales momentum and elevated live sports events. Travel continued to deliver growth despite tough year-over-year comparison.
    		—approximately 23%——
    Fashion and Luxury
    Driven by new and upsell activity as well as same-store performance.
    		—4%——
    United States
    Billings growth, up from 10% in Q1. Reflects continued strength in tickets and the addition of new merchants in digital finance.
    		—approximately 38%——
    APAC
    Billings growth in Q2. Healthy underlying demand in the region, with expectations for more balanced growth as the year progresses.
    		—approximately 42%——
    Other Americas
    Billings growth, up from 11% in Q1, primarily driven by new business activity.
    		—approximately 21%——
    India
    Billings growth against a strong prior year comparable period in the travel vertical.
    		—approximately 3%——

    Operational metrics

    12
    Non-GAAP gross profit
    $45.4Mup 13% YoY
    Q2 FY26

    Driven by contribution of new business and strong same-store activity in tickets.

    Adjusted EBITDA
    $3.9Mup 84% YoY
    Q2 FY26

    Compared to $2.1M in Q2 FY25, demonstrating efficiency of scaling cost structure.

    Cash and investments balance
    $223.6M
    Q2 FY26

    Ended the second quarter with zero debt.

    Non-GAAP operating expenses
    $41.5M
    Q2 FY26

    Reflecting sustained cost discipline as business scales.

    Non-GAAP operating expenses (constant currency)
    $4.1M lower
    Q2 FY26

    Primarily driven by the continued appreciation of the Israeli shekel.

    GMV
    $41.3Mup 13% YoY
    Q2 FY26

    Primarily driven by continued new merchants and upsell activity.

    ACH transactions processed value
    approximately 19xvs Q2 FY25
    Q2 FY26

    Dollar value of ACH transactions processed.

    Multiproduct merchant base growth
    approximately 50%YoY
    Q2 FY26

    Clear evidence that the platform strategy is working, driving upsell opportunities and retention.

    Competitive win rates
    above 75%
    Q2 FY26

    Further evidence of the differentiation of the platform relative to alternatives.

    GAAP net loss
    $9.1Mimproved 22% YoY
    Q2 FY26

    Compared to a loss of $11.6M in Q2 FY25. Impacted by decline in interest income and increase in other expense tied to foreign currency fluctuations.

    Shares repurchased
    13.7M shares
    Q2 FY26

    Contributed to a reduction of 8% in total shares outstanding.

    Total shares repurchased since inception
    72M shares
    Inception to Q2 FY26

    Helped contribute to a 26% reduction in total shares outstanding over that period.

    Industry KPIs

    7
    MetricValueDetails
    Revenue growth$98.7MUSD
    Customer account countapproximately 50%%
    Large deal new logo metricssignificant contributor
    Multi product platform attachapproximately 50%%
    Operating FCF margin rule of 4058%%
    Ai product adoption monetizationgained traction
    Net revenue net dollar retentionaround 105%%

    Product announcements

    1
    ProductTypeDetails
    ARIA AI assistantupdate

    Deals & partnerships

    1
    MarqetaData and risk information sharing to increase approval rates

    The partnership provides Riskified the ability to share data and risk information with Marqeta, allowing them to increase approval rates on behalf of Riskified's merchants. This creates a more differentiated offering for Riskified in competitive situations.

    Risks & headwinds

    3
    Increasingly complex fraud environmentOngoing

    Loss rates rise industry-wide; sophistication and velocity increasing, possibly due to agentic tools.

    Mitigation: Riskified's expanded platform, identity intelligence, and unified approach to fraud management across the transaction lifecycle.

    Gross margin pressure from new merchant ramp-up and mix shiftQ2 FY26

    Gross margin was 46% in Q2 FY26.

    Mitigation: New merchants typically begin at lower margins but are expected to improve over time; performance across existing merchant base remained healthy due to ongoing enhancements to core machine learning models.

    Foreign currency fluctuations impacting GAAP net lossQ2 FY26

    GAAP net loss impacted by increase in other expense tied to foreign currency fluctuations.

    Mitigation: Non-GAAP operating expenses would have been $4.1M lower on a constant currency basis, indicating underlying operational efficiency despite currency headwinds.

    What to watch in Q3 FY26

    5

    Digital Finance category growth

    Remainder of 2026
    Currentapproximately 180% YoY in Q2 FY26
    TargetSignificantly exceed company's average growth rate

    Why it matters

    This category is a key growth driver, and its continued outperformance is critical for overall revenue acceleration and achieving full-year targets.

    Looking ahead, we continue to expect our tickets and travel, digital finance and fashion and luxury categories to collectively approximate 80% of total billings for the year, with digital finance to significantly exceed the company's average growth rate throughout the remainder of 2026.

    Q&A highlights

    6

    Is the new logo momentum a continuation or an inflection due to AI proliferation, and how confident is Riskified in maintaining CPV ratios given increasing fraud complexity?

    Eido Gal stated that the momentum is a convergence of an expanded product platform and increased fraud sophistication, possibly AI-related, causing everything to 'click' this quarter. He affirmed confidence in solving fraud better than individual merchants and expects CPV ratios in newer categories/geographies to improve over time.

    “I do think some kind of fundamental issues and kind of just all aligning to good timing right now. To the second part of your question, yes, we continue to feel confident about our ability to solve the problems of fraud and definitely more so than any single individual merchant can.”

    asked by Ryan Tomasello · answered by Eido Gal

    2 min read6 chapters

    Detailed Narrative

    01

    Complex Fraud Environment & Platform Expansion

    Riskified highlighted that fraud risk is growing more sophisticated and moving faster, potentially due to agentic tools, leading to rising industry-wide loss rates. The company's expanded platform, covering account creation, login, checkout, and post-purchase activities, is addressing this complexity. Merchants are increasingly seeking unified solutions over multiple point solutions, finding that the platform approach performs better by strengthening defenses across the transaction lifecycle.

    02

    Non-Card Payment Coverage & ACH Growth

    The company has developed a robust risk layer for non-card payment methods, such as ACH, enabling instant payouts and substantially reducing risk for merchants. This innovation allows merchants to leverage low-cost funding instruments while meeting customers' diverse payment preferences. The dollar value of ACH transactions processed in Q2 FY26 was approximately 19 times the value processed in the second quarter of the prior year, demonstrating significant adoption and value creation.

    03

    Identity Intelligence Beyond Checkout

    Merchants are increasingly utilizing Riskified's identity intelligence for applications beyond traditional checkout fraud prevention. This includes real-time risk scoring within customer service workflows and creating dynamic customer risk profiles to facilitate faster transactions for trusted customers. The platform's extensive identity database, comprising billions of nodes across the transaction lifecycle, positions Riskified to deliver additional value by optimizing customer experience based on risk understanding.

    04

    New Business Momentum & Category Strength

    The quarter saw a significant acceleration in new business momentum, diversified across various geographies and merchant categories. New logo acquisition was a strong contributor, with 5 of the top 10 new logos headquartered outside the United States. Healthy activity was observed in travel, payments (rebranded as digital finance), and fashion verticals, with elevated transaction volumes from live sports events particularly benefiting tickets and digital finance categories.

    05

    Multiproduct Adoption & Retention

    Riskified's multiproduct merchant base grew approximately 50% year-over-year, serving as clear evidence of the platform strategy's effectiveness. This expansion into more of the network drives additional upsell opportunities and reinforces customer retention. The company also maintained competitive win rates above 75% in the second quarter, further validating the differentiation of its platform against alternatives.

    06

    Financial Performance & Capital Allocation

    The company achieved strong revenue growth and increased profitability, leading to a raised full-year outlook for both revenue and adjusted EBITDA. Riskified maintains a strong balance sheet with $223.6 million in cash, deposits, and investments, and carries zero debt. It generated $12.9 million in free cash flow in Q2 FY26 and continued its share buyback program, repurchasing 13.7 million shares for $63.9 million, contributing to an 8% reduction in total shares outstanding during the quarter.

    AI-generated summary of the company’s earnings call. Not investment advice.